Modern economy needs capitals (financial and technological) for innovating and investing for creating new real wealth.

Financial assets create no real wealth but just the power for consuming the existing wealth.

Finance is a zero-sum game, i.e. for each winner there is a similar amount of looser.

New real wealth means that producers increase the total amount of „real“ products, increasing this way the real assets of everybody for consume. Then it is a non-zero game, i.e., everybody, even if in different amount, have an assets increase, a gain.

Technological capital has real wealth but is terrifically hard to be assessed.

Now, if we consider any innovative or investing process moving from scratches, than we need to forecast financial resources which can boost this process. Imagine in this case the start up of the whole economic cycle: for producing we need financial resources, otherwise we cannot buy material or pay workers, or services needed for the start up.

In other words we need a Government which, through a fiat money policy, generates credibility.

Therefore, money is just credibility, not a real worth.

Following economics. the only problem of fiat money is that it can never exceed the production capacity of real worth, otherwise generates price inflation.

Deficit spending indicates the amount by which spending exceeds revenue over a particular period of time, also called simply deficit, or budget deficit; the opposite of budget surplus. The term may be applied to the budget of a government, private company, or individual.

Project finance indicates the long-term financing of infrastructureand industrial projects based upon the projected cash flows of the project rather than the balance sheets of its sponsors. Usually, a project financing structure involves a number of equityinvestors, known as ‘sponsors’, as well as a ‘syndicate’ of banksor other lending institutions that provide loansto the operation. They are most commonly non recourse loans, which are securedby the project assets and paid entirely from project cash flow, rather than from the general assets or creditworthiness of the project sponsors. The financing is typically secured by all of the project assets, including the revenue-producing contracts. Project lenders are given a lienon all of these assets and are able to assume control of a project if the project company has difficulties complying with the loan terms.

In both cases the term finance indicates not a real measurable worth, but just a supposed, or credible worth. Credibility is the lever of any economic good process, even if more and more current economy seems based more on robbery and less on reciprocal credibility.

In the EU economy member States are no more free of applying for deficit spending, because only the Central Bank (ECB) can generate fiat money. Therefore member States need to apply for a Project Finance model, which seems to be also more appropriate to innovation or investment.

In effect, any project finance requires profitable (in term of money return) projects, therefore projects such as nature protection or social welfare are not allowed. Those innovations or investments need to be finance only via deficit spending, i.e. excess of income and other tax, or they need to generate a monetary income that can repay their cost.

Least and not last, just a few words in favor of project financing.

In the past time deficit spending, as financial assets generated through fiat money but spendable as real money, has arisen and moved towards bribery and corruption more than to new real wealth creation because no efficiency was requested to that kind of investments.

States such as Italy, Greece, Portugal, Ireland, Spain, Cyprus, Croatia, Rumania, Bulgaria and so on, are fully affected by bribery and corruption because they spent in the past huge amount of money in deficit spending with no control from investors as it happens with a project financing system.

Now those countries are all in deep crisis and they would like to spend money in deficit spending asking the EU to allow them to work this way. They do not care whether their political and administrative systems are correct and efficient, they want to spend not for investing in the creation of new real wealth, but just for feeding their bribery and corruption systems.

It is time now for all goodwill people to put a halt to this criminal way of doing business.

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